Youth's disengagement is 'alarming'

IT is alarming that a quarter of young Australians are not in full-time work or study, industry representatives say.

The COAG Reform Council was baffled by the finding in its latest reports, released on Wednesday, that there was a significant group of young Australians who were neither earning nor learning.

The council found the proportion of 18- to 24-year-olds fully engaged in employment, education or training had dropped to 72.5 per cent in 2011.

The results were surprising given the genuine focus by all governments on education and training, council deputy chairman Greg Craven said.

The Australian Industry Group said the level of disengagement was a big concern.

"For a country that has experienced 20 years of continuous economic growth it is alarming that one in four young people are disengaged," chief executive Innes Willox said.

"A concerted effort must be made to re-engage this group in meaningful education, training and employment."

Prof Craven said it was important to find out what these young people were doing and whether their needs were being met.

"We need to focus very, very carefully on making sure that all Australians are equipped to participate and benefit from both the society and the economy," he said.

The reform council also found the reduction in the number of people without any kind of higher-level qualification was happening too slowly to meet COAG's 2020 target.

The proportion of working Australians without at least a Certificate III dropped between 2008 and 2011, but the trend rate indicated there would still be a third of Australians without such a qualification in 2020 - 10 points higher than the target level.

Mr Willox said this result was disappointing.

"As a national priority we need to double our efforts if we are to get our workforce ready to reap the benefits of the Asian century," he said.

"Whilst we acknowledge the work and progress made by all levels of government towards achieving the COAG targets, the task is not yet done.

"More intensified strategies need to be put into place where progress is lagging."

Prof Craven said the council was "very, very hopeful" a new national agreement signed in April would improve results.